Dollar Tree, Inc.
Q3 EPS Beat; Revenues Light
The company reported third-quarter net income of $171.6 million or $0.72 per share. In comparison, the company earned $81.9 million or $0.35 per share last year. Adjusting for a $0.09 per share expense related to debt refinancing, the company's adjusted earnings were $0.81 per share, coming in at the top end of its $0.76–$0.82 guidance range.
Net sales rose 1.1 percent to $5 billion from the year-ago's $4.95 billion. The company clarified that the previous year's results included sales from
Analysts, on average, expected earnings of $0.78 per share on sales of $5.08 billion.
Comps rose 1.7 percent on a constant currency basis compared to a 2.1 percent increase last year.
Ahead of the results,
Guidance: Mixed Bag
For the fourth quarter, the company expects sales of $5.59 billion to $5.69 billion, aided by low-single-digit increases in comps for the Dollar Tree and Family Dollar segments. The company raised its earnings per share forecast to $1.24–$1.33 from $1.21–$1.30.
The company guided full-year sales of $20.67 billion to $20.77 billion, down from $20.69 billion to $20.87 billion expected previously. The sales forecast is based on a low-single-digit increase in comps. Adjusting for the debt refinancing that occurred in the third quarter, the company trimmed the high-end of its earnings per share forecast by $0.06 per share, with the new range at $3.67–$3.76.
In pre-market trading, shares of Dollar Tree were up 7.96 percent at $81.99, and Dollar General was up 3.17 percent at $76.74.
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